Financial News: Japan Private Sector Falls Into Contraction

Japan Private Sector Falls Into Contraction

05/22/2025 - 01:38:00 (RTTNews)

(RTTNews) - Japan's private sector activity fell back into contraction territory in May due to a steeper fall in manufacturing output alongside a weaker growth in the services sector, flash survey results from S&P Global showed on Thursday.

The au Jibun Bank composite output index dropped to 49.8 in May from 51.2 in the previous month. A score below 50.0 indicates contraction.

The manufacturing Purchasing Managers' Index rose to 49.0 from 48.7 in the previous month. However, the score remained below the crucial 50.0 mark for the eleventh straight month.

Meanwhile, the services PMI registered 50.8 in May, down from 52.4 in April. The score signalled a back-to-back increase in services activity.

At composite level, new business fell for the first time in nearly a year and foreign demand dropped for the second straight month.

Input price inflation cooled in May and there was only softer uptick in selling prices.

Business confidence reached the second-lowest since the initial wave of the pandemic, the survey showed.

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